UNIT I

COMPUTARIZED ACCOUNTING
Essay questions
1. Discuss about computarized accounting and its features

Ans. Introduction:

Computarized accounting is the process of using computers to records,

store and process financial transactions. This type of accounting is typically
done using specilized softwares, which can automate many of the tasks
involved in accounting. Such as creation of invoices, tracking payments and
preparing financial statements.

A computarized accounting sustem is a software application that

automates financial recorsds and reporting processes to make them faster more
accurate and easier to manage. It reduces the manual entry of data, eliminates
redundant operations, and reduces accounting error risk with built in controls.

Features of computarized accounting:

The following are the basic features of the computarized accounting:

 Data securuty:
A computarized accounting system allows users to store their data in a
central location. In this way, if any piece of paper that contain valuble
information is last, no one is at risk of having their information stolen. All
the data is hence stored at a central location.
 Improved reporting:
In accounting software, various things, are automated a very less things
are recorded manually. This helps in improving reporting of transations
and statements.
 Accuracy and speed:
The automation of accounting process with the help of various accouting
software ensures that accounting works is done fast and accurately.
 Flexible:
Computarized accounting sustem is so flexible as to accommodate the
changing business volume
  Quick decision making:
Since a computarized accounting system generates real-time information,
managers are quick to come up with instant decisions or solutions to a
particular problem.
 Realibility:
A computerized accounting system produces standards and accurate
accountig information consistantly
2. Discuss about MS-Excel spread sheet package

Ans. Introduction:

MS Excel is a commonly used microsoft office application. It is a

spreadsheet program which is used to save and analyse numerical data. It is the
program where one can record data in the form of tables. It is easy to analyse
data in an excel spreadsheet.

How to Open an Excel:

To open Ms Excel on your computer follow the steps given below:

Step 1: Click on Start

Step 2: Then all programs

Step 3: Click on MS Office

Step 4: Choose on MS Excel option.

Alternatively, you can also click on the start button and type MS Excel in
the search option available.

Features of MS Excel:

Various editing and formating can be done on an excel spreadsheet.

Various features of MS Excel are discussed below:

 Home:
This option comprises options like fornt size, front style, front colour,
background colur, alignment, formating options and styles, insertion and
deletion of cell and editing options.
 Insert:
Comprises option like table format and style, inserting images and figures,
addiging equation and symbols.
  Page layout:
Teams, orientation and page setup ooption are available under the page
layout option.
 Formulas:
Since tables with a large amount of data can be created in MS Excel,
under this features, you can add formulas to your table and get quicker
solutions.
 Data:
Adding external data (from the web), filtering option and data tools are
available under this category.
 Review:
Proof reading can be done for an excel sheet in the review category and
reader can add comments in this part.
 View:
Different views in which we want the spread sheet to be displayed can be
edited here. Options to zoom in and out and pane arrangements are
available under this category.
3. Discuss about MS-Excel window components

Ans. Components of MS Excel:

Before starting MS Excel; its really important to understand whats

where in its window. So ahead we have all the major components which you
need to know before entering the world of MS Excel.

 Active cell:
An active cell is a cell that is currently selected. It will be hilighted by a
rectangular box and its address will be shown in the address bar. You
can activate a cell by clicking on it by using your arrow buttons. To edit a
cell, you double click onit or use F2 as well.
 Column:

A COLUMN in Excel is a vertical set of cells. A single worksheet contains

16384 total columns. Every column has its own alphabet for identity, from
A to XFD. You can select a column by clicking on its header.
 Row:

A ROW in Excel is a horizontal set of cells. A single worksheet contains

1048576 total rows. Every row has its own number for identity, starting
from 1 to 1048576. You can select a row by clicking on the row number
marked on the left side of the window.
  Fill handle:
Fill Handle a small dot present in the lower right corner of the active cell.
It helps you to fill numeric values, text series, insert ranges, insert serial
numbers, etc
 Address Bar
It shows the address of the active cell. If you have selected more than one
cell, then it will show the address of the first cell in the range

 Formula Bar
The formula bar is an input bar, below the ribbon. It shows the content of
the active cell, and you can also use it to enter a formula in a cell
 Title Bar
The title bar will show the name of your workbook, followed by the
application name (“Microsoft Excel”

 File Menu
The file menu is a simple menu like all other applications. It contains
options like (Save, Save As, Open, New, Print, Excel Options, Share, etc

 Quick Access Toolbar

A toolbar to quickly access the options which you frequently use. You can
add your favorite options by adding new options to the quick access
toolbar.
 Ribbon
Starting from Microsoft Excel 2007, all the options menus are replaced
with the RIBBON. Ribbon tabs are a bunch of specific option group which
further contains the option
 Worksheet Tab
This tab shows all the worksheets which are present in the workbook. By
default, you will see, three worksheets in your new workbook with the
names Sheet1, Sheet2, and Sheet3 respectively

 Status Bar
Status Bar in Excel is a thin bar at the bottom of the Excel window. It will
give you instant help once you start working in Excel
4. Discuss about formulas and functions in Excel

Ans. Introduction:

Functions and formulas are the backbone of your Excel skill. Microsoft
continuously update and expands its native set of Excel formulas and functions.
They constantly add new and improved functions like the powerful xlook up
function. These updates are only available in the latest version of Excel version
it is recommended to upgrade your excel version to have the complete tool set.

Difference between excel Function and Formulas:

As we all have the simple doubth that what is the difference between
function and formula? Well, that is quite simple. A function is a piece of code
designed to calculate certain values. A formula on the other hand can contain
values, references to cells and functions. So that means, if you are calculating
something in excel you use formulas and use functions with in your formulas.

Functions of Excel:

The following are some of the most basic and fundamental functions to create
powerful formulas in Excel:

 SUM Function
The Excel SUM function returns the sum of all inserted values. For the
input, you can combine any sort of numerical values, e.g. numbers, cell
references, ranges or arrays.
Syntax: SUM (number1, [number2], [number3], …)

 AVERAGE Function
The Excel AVERAGE function returns the average of all inserted
values. For the input, you can combine any sort of numerical values, e.g.
numbers, cell references, ranges or arrays.
Syntax: AVERAGE (number1, [number2], [number3], …)

 IF Function
The Excel IF function is the most essential function in Excel for logical
tests. You can define the value that is returned by this function if the
result of the logical test is TRUE and the value that is returned if the result
is FALSE.
If you want to test more than one condition, you can simply nest multiple
IF functions.
Syntax: IF (logical_test, [value_if_true], [value_if_false])

 MIN & MAX Function

The Excel MIN function returns the smallest numeric value in a range of
values. Accordingly, the Excel MAX function returns the biggest numeric
value in a range of values. Both function only consider numeric values.
Empty cells, logical or text values will be ignored.
 Syntax: MIN (number1, [number2], …) | MAX (number1,
[number2], …)

 TRIM Function
The Excel TRIM function removes the leading and trailing spaces from a
given text. Additionally, it removes unnecessary spaces between words.
Syntax: TRIM (text)

 CONCATENATE Function
The Excel CONCATENATE function joins two or more text items together.
Syntax: CONCATENATE (text1, [text2], …)

 COUNT Function
The Excel COUNT function counts the number of cells containing numbers.
Syntax: COUNT (value1, [value2], …)

 COUNTA Function
The Excel COUNTA function counts the number of cells containing
numbers, text, logical values, error values, and empty text. Empty cells
will be ignored.
Syntax: COUNTA (value1, [value2], …)

 COUNTIF Function
The Excel COUNTIF function counts the number of cells meeting a specific
criteria. It supports all sorts of logical operators and wildcards (*,?)
for partial matching.
Syntax: COUNTIF (range, criteria)

 SUMIF Function
The Excel SUMIF function returns the sum of all cells meeting a specific
criteria. It supports all sorts of logical operators and wildcards (*,?)
for partial matching. If the range for the criteria check and the sum range
are not the same, the sum range can be provided as a third optional
parameter.
Syntax: SUMIF (range, criteria, [sum_range])
5. Discuss about preparation of accounts unsing Excel

Ans. Introduction:

When you start your business, time and money are in short supply. Your
top priorities are finding customers and delivering a great product or service.
Book Keeping and accounting llikely aren’t at the top to your to-do-list.

Many small business owners use an Excel accounting template at first

because its more familiar and stright forward. However, most accounting
professionals encourage the use of online accounting software for easy and
more accurate accounting and bokkeeping.

Excel is a very stright forward way to do it but you’ll still need to

understand the accounting process and how to complete each task, using Excel.
You will need to set up accounts, post transactions, and create your income
statements using Excel.

Before you use Excel for accounting purpose, you will want to identify your
accounting needs. Know that most excel accounts templets will only be useful
for sngle entry accounting as opposed to double entry system.

This works if your business does not have cetrain accounts, such as
inventory or accounts receiveble and payble. As a result, you will only be able to
create an income statement using your excel accouting templete.

Book Keeping in Excel:

Bookkeeping in Excel involves using Microsoft Excel to record transactions

and financial data for your small business. With the Excel bookkeeping system,
you can record different types of transactions to and from your business bank
accounts. You can keep track of your inventory, employees, suppliers, etc.

Although many don’t think of Excel as accounting software, the program

can be valuable for small business bookkeeping. Creating Excel bookkeeping
templates can help you automate everyday tasks, save time, and minimize the
chances of errors.

How to create a Book Keeping system in Excel:

Here’s how you can create a bookkeeping system in Excel.

 Step 1 – Prepare a Bookkeeping Excel Sheet Template

If you’ve used Excel before and know how to get around it, you can build
your Excel bookkeeping template from scratch. Those who haven’t used
Excel before or aren’t familiar with its features can download Excel
bookkeeping templates online. Once you create or download templates, you
can use them as a basis for more advanced account-related tasks like
basic financial statements, forms, receipts, reports, etc.
 Step 2 – Customize Your Chart of Accounts

The next step is to customize your chart of accounts to ensure it fits your
business. You should create points of reference that will remind you what
transactions you should place in specific categories. First, you’ll need to
make a list of every type of expense or income your company has. Then,
you should create an account for each, list it in the chart of accounts, and
use it as a reference when categorizing transactions.

 Step 3 – Customize Your Income Statement Sheet

Your income statement sheet contains information from your chart of

accounts. To ensure high accuracy, you’ll need to customize your income
statement sheet to mirror the chart of accounts. Every account should be
separated based on whether it’s income, expense, or COGS.

 Step 4 – Create a Sheet for Invoices

This step isn’t required for basic bookkeeping in Excel, but it can help you
with the organization. When entering income from invoices, add the invoice
number. That way, you’ll be able to cross-reference the data, check for
errors, and ensure you don’t enter an invoice payment twice or forget to
enter it. Having a separate sheet for invoices makes tracking your money
much easier. You can create a separate sheet yourself or download a
template.

 Step 5 – Create a Sheet for Projecting Cash Flow

This is another step that isn’t necessary for Excel accounting. What’s more,
Excel isn’t the best program for creating cash flow statements and sharing
them with investors or other parties. However, many small business
owners decide to create a sheet for projecting cash flow for the purpose of
monthly planning. Like with the sheet for invoices, you can create the sheet
on your own or download a template.

 Step 6 – Save the Excel File

After you’ve created the perfect Excel template for your business and
added the necessary sheets, it’s time to save the Excel file. You can keep it
on your drive or computer. Since this file contains valuable information
 regarding your company’s bank accounts and accounting records, it’s vital
to ensure its security.

6. Discuss about preparation of Income statement using MS-Excel

Ans. Introduction:

An Income statement is a fnancial document that organization use to track

their revenue and expences from a particular period. It’s effective for tracking
earnings and spendiing per category to represent the are all financial health of
an organization. Categorizing the data may help highlight. Where the
organization succeseds and potential areas for improvement, providing insights
into how the organization may optimise its operations and increase its earnings.

When it is important to create an Income Statement in Excel:

Its important to create an incmome statement in Execl. If you are looking

for a way to create financial records in a program that you may already be
fiamiliar with using. It may be especially appealing to small business owners
who use cash based accounting systems to access their revenue and expences
using Excel allows you to input the transations from your cash-based accounting
system easily for a simple way to track your finance.

How to make an Income Statement in Excel:

The following are the steps to create a Income Statement using Excel:

 Choose Your Period

Most income statements are prepared annually. That way, you can see
how you did your previous year and what you can improve. However, you
can create quarterly (or even monthly) income statements. This is
particularly useful if your business is new or if you're changing strategies.
That's because it allows you to see the overall impact of the changes you
make.

 Have Your Journal on Hand

Accurate record-keeping is necessary for any statement you make. That's

why businesses need to keep track of their financial transactions in a
journal. If you haven't started a journal yet, you can create your income
 statement with your receipts, bank statements, and other records. As long
as you have complete details, you can make a reasonably accurate
income statement.

 Arrange Your Information

Before moving forward with creating the income statement, you should
arrange them first. This document has four primary categories:

o Revenue/Profit Section: refer to money made and spent under

your company's primary purpose.
o Operating Expenses: refers to your company's day-to-day
expenses. These are your required expenditures to run your
business.
o Gains (Losses) from Continuing Operations: refers to your
interest expense, taxes, and other cash movements unrelated to
operations.
o Non-recurring Events: refers to significant, non-recurring gains
and losses. These could be the sale or purchase of significant
assets, income from discontinued operations, accounting
considerations, and other items.

Find which section each transaction falls in so it will be easier to fill out
your Excel file later.

 Make the Excel File

o To make your Income Statement, first, open up Microsoft Excel,
then create a new file.
o In the first cell, type in [Company Name] Income Statement. This
helps you organize your files, especially if you need to print this
document.
o Skip one row and then write Covered Period. This shows what
dates are covered by this income statement.
  Find Your Subcategories

The four categories provided remain the same across most companies.
However, the sections under here will change from business to business.

 Prepare Your Formulas

Formulas in your income statement are simple. After all, it's just a matter
of adding or subtracting values. However, all values are connected, so you
should be careful when writing your formulas.

 Format Your Document

To make your document easier to read, format it so that negative numbers

appear red. Do this so that you can quickly analyze your statement with
just a glance.

 Place Your Values

Once you've prepared everything, place all the actual values that you've
prepared. All amounts you enter should be positive unless it's for a row
that's marked Less:

See How Your Business Performed

Now that you know where you make money and where your expenses are,
you can see if you are hitting your goals. Using this document, you can see how
efficiently you run your business. You can also compare this document between
two periods. It's especially helpful if you're making strategic changes. You'll see if
the changes you made are effective or not.

7. Discuss about preparation of Balance Sheet using MS-Excel

Ans. Introduction:

Building a balance sheet is an important practice that must be calculated

on either a quarterly or monthly basis. This financial statement provides insight
into your company’s financial health by detailing your assets, liabilities and
shareholders’ equity.

An accounting balance sheet is a snapshot of your company’s financial

situation. Balance sheet help with financial planning and give business visibility
into company assets, liabilities and owner’s equity. It’s one of the three
fundamental financial statements that every business owner needs to have in
order to perform financial modeling and accounting the other two documents
being an income statement and cash flow statement.

At its essence, an accounting balance sheet is one of the most accurate

ways to analyze the company’s financial position. When fleshed out, a balance
sheet can show you:

 What a business owns

 What the business owes
 How mich has been invested into the company.

Creating a balance sheet in Excel:

To conduct a balance sheet analysis in Excel, you'll first need to create a

balance sheet. Here's a step-by-step guide:

 Open a new Excel document

 Label Cell A1 "Balance Sheet"
 Label Cells A2-A4 "Assets", "Liabilities", and "Equity", respectively
 Under each category, list the specific items that fall under it
 Insert the dollar amount for each item in the corresponding cell
 Use the sum function to add up each category and total assets, liabilities,
and equity. Label these cells "Total Assets", "Total Liabilities", and "Total
Equity", respectively
 Calculate the business's net worth by subtracting liabilities from assets.
Label this cell "Net Worth"

It's important to note that when creating a balance sheet in Excel, you
should ensure that the balance sheet is balanced. This means that the total
assets should equal the total liabilities and equity. If they do not match, you'll
need to go back and check your calculations to find the error. Additionally, you
can use formatting tools in Excel to make your balance sheet more visually
appealing and easier to read. For example, you can use borders and shading to
separate different sections of the balance sheet and make it easier to navigate.
8. Discuss about preparation of Cash Flow Statement using MS-Excel

Ans. introduction:

A cash flow statement is a financial document the shows the movement of

cash and cash equivalents in your business. You could see where all the money
in your business came from and where you spend it.

This document can tell you how your are managing your operations. Do
you have enough cash to operate your business? Can you pay off your coming
obligations?

It provides an overview of a company,s cash position by breaking down

cash inflows and outflows into 3 categories. They are as fllows:

o Operating activities refers to cash inflow and outflow the results from
company’s primary business operation, such as revenue, from sales,
payments to suppliers and salaries to employees.
o Investment activites; refer to cash inflow and outflow that result from buying
and selling long-term asstes, such as equipment, property or stocks.
o Financing activities; refers to cash inflow and outflows that result from rasing
and repairing debt, issuing and buying back stocks or paying devidends.

By tracking these 3 categories, a cash flow statemtn provides z

comprehensive picture of a company’s cash position, helping investors and
managers understand how well the company manages its finances.

Preparing to creaate cash flow statement in Excel:

Outling your cash flow statement, determining your data source and
organizing your data are crutial steps before you start building the cash flow
statement in Excel. A step-by-step procedure would look like this:

 Outline your cash flow statement: To create a cash flow statement that
meets your needs, start by outlining the sections you want to include. For
example, you can add sections for operating, investing, and financing
activities.
 Determine your data sources: Once you have outlined your cash flow
statement, determine the data sources you need to use. This may include
your financial and bank statements and other financial records.
 Organize your data: To make it easier to create your cash flow statement
in Excel, organize your data in a clear and consistent manner. This may
involve formatting your data, removing duplicates, and sorting your data
by date or category.
  Consider using Zebra BI: If you're struggling to visualize your data or
want to streamline the process, consider using Zebra BI for Office. This
powerful add-in for Excel can help you organize your data and create clear
& understandable charts and tables.

By taking these steps to prepare your cash flow statement in Excel, you
will be able to create a statement that is accurate, comprehensive, and easy to
read. In the next section, we will discuss building your cash flow statement in
Excel, including creating a layout and inputting data.

Building Your Cash Flow Statement in Excel

Now that you have prepared to create your cash flow statement in Excel, it's
time to start building it. Here's what you need to do:

 Create a layout: Start by creating a layout for your cash flow statement.
This should include the sections you outlined in the preparation phase, as
well as rows and columns for inputting your data.
 Build the operating activities section: Start with the operating
activities section, typically the largest section of a cash flow statement.
Input your data for cash inflows and outflows related to your primary
business operations, such as revenue, cost of goods sold, and salaries.
 Create the investing and financing activities sections: Once you
have inputted your data for the operating activities section, move on to the
investing and financing activities sections. Input your data for cash inflows
and outflows related to long-term assets, debt, equity, and dividends.
 Error-proof your cash flow statement: Finally, make sure to error-proof
your cash flow statement by checking your data for accuracy and
consistency. You will probably want to double-check formulas and
functions in Excel to ensure that your calculations are correct. The Zebra BI
add-in can automatically calculate variances for you.

By following these steps, you can create a cash flow statement in Excel that
is accurate, comprehensive, and easy to read.

9. Discuss about preparation of budget using MS-Excel

Ans. Introduction:

Creating a budget can help you plan your expenses and income over a
period. While you may use various computer applications to prepare one,
Microsoft Excel is a popular option because of its unique functionalities. Learning
the process of creating a budget in Excel can influence your activities at work or
in your personal life.
 Learning how to create a budget in Excel is important because it can aid
financial decision-making. Whether to track payroll, rent, utility, or insurance,
preparing a budget can offer you direction on what products or services to
purchase. The creation process may be convenient in Excel because the software
program has a simple interface. It's also the preferred choice in business
environments because of its financial features and math functions.

You may create a budget manually or using a template. Manually creating

budgets can offer more flexibility to change its structure and elements. In
comparison, you can use a template if you want a framework that saves time.
Regardless of the option you choose, consider:

 Identifying your financial goals

 Determining the period your budget covers
 Calculating your income from all sources
 Identifying all transactions

Create a budget in Excel using templates

If you prefer to use a template, you can follow these steps to prepare a
budget in Excel:

 Navigate to the "File" tab

The "File" tab is on the top ribbon in Excel. Depending on the software
version you have, you may see an option to click on the "New from
template" tab in a drop-down menu or "New tab." Clicking either tab
changes the computer application's interface.
 Search for budgets
You can expect to see a bar on the new interface. Search for "Budgets" by
typing it in the bar. Check that you have a reliable internet connection to
complete this step.
 Select a suitable template
Microsoft Excel has various budget templates to suit your specific situation.
Here are the most common ones available:
o Family budget: helps you track monthly income, expenses, and cash
flow and present the information visually
o Household budget: shows estimated and actual costs for individual
items and automatically calculates the difference
o Event budget: outlines expenses, including costs for the venue,
refreshments, and entertainment
 o Wheel budget: focuses on the visual representations of a budget's
expenses
o Business expense budget: calculates line items per year and aids
financial management in small- and medium-sized businesses
o General ledger with budget: enables you to create a company's
expense account and record monthly expenses
o Website budget: helps you manage your website development
expenses over three years
o Channel marketing: offers direction on what to spend on marketing
channel activities
o Gardening and landscaping budget: enables you to plan landscape
and budgeting needs by including the budgeted amount for plans,
flowers, and trees
 Fill the template
Completing this step may vary depending on the template you select.
Many have formulas that enable you to calculate total spending and costs
per period. There are often explanations for budget headers, which can
suggest what type of data to enter in each column.

How to create a budget in Excel manually

Follow these steps if you prefer to prepare a budget from a blank

document:

 Create budget headers

After opening Excel, include your budget's column names. Consider
creating these headers in bold text or italics to highlight them. It's also
important to choose a readable font, such as Times New Roman, Arial, or
Calibri. Here are common headers to have in a budget:
o date
o expenses
o cost
o income
o balance
o notes
 Enter the expenses, costs, and income
Include your estimated expenses or costs in the created columns. Noting
each entry's date may be useful for reference purposes. It's also important
to include notes as you enter each row instead of at the end. Doing this
can help you remember all relevant details concerning a budget item.
  Calculate the balance
In accounting and finance, a budget's balance is the difference between
total expected revenue and total expenses. You can find this amount by
using a formula. Select the field in which you want the balance to display,
and input this formula into that field or the formula tab just above the
spreadsheet:
= income - cost
 Create visualizations
Click on the "Insert" tab on the top ribbon and navigate to "Recommended
charts." Next, select the chart or graph you want to create, such as
histograms, bar charts, line graphs, and pie charts. You can also navigate
to "Sparklines" to select a visualization tool. A pie chart is a popular option
for visualizing budgets because it can show budget items as part of a
whole.
10. Discuss about Data Analysis and Interpretation

Ans. Introduction:

Analyzing data is a process of looking for patterns in data that has been
collected through inquiry and figuring out about what the patterns might mean.
Interpreting the data is a process of trying to explain the patterns that were
discovered.

Definition
Analyzing data is a process of looking for patterns in data that has
been collected through inquiry and figuring out about what the patterns might
mean.

Interpreting the data is a process of trying to explain the patterns that

were discovered. Analyzing and interpreting data may not always be a simple
linear process. Sometimes, more data is needed or the data needs to be
recorded and displayed in a different way to discover the patterns.

Analyzing & Interpreting are important because it…

 supports the development of understanding about the relationship

between parts and the whole (e.g., graphic displays of data are more
than a collection of individual parts but represent a whole picture of
some kind of information)
 provides opportunities for students to interpret and synthesize
information gained through observations
 supports students’ ability to make inferences, draw conclusions and
develop theories
 There are several data analysis tools available. Some of those are:
 Python
 R
 SAS
 Apache Spark
 Tableau
 Power BI
 QlikView
 Microsoft Excel
 KNIME
 RapidMiner
 Solver
 OpenRefine
 NodeXL
 io
There are five types of data analysis:
 Descriptive Analysis
 Diagnostic Analysis
 Predictive Analysis
 Prescriptive Analysis
 Cognitive Analysis

 Descriptive Analysis: What has happened?

Descriptive Analysis, as the name says, describes the data. The

foundation step simply looks at the past data and tells what has
happened in the past. It captures and summarizes the past using
measures of central tendency, measures of dispersion, visualizing using
dashboards. This analysis helps understand how the data is present and
does not make any predictions or answers why something has happened.
It is useful for generating reports, tracking Key Performance Indicators
(KPIs), sales leads, and revenue reports.

 Diagnostic Analysis: Why has it happened?

After identifying what has happened, the next logical step in the process is
to find the answer to why something has happened. Diagnostic analysis
helps dig further by creating detailed, informative, dynamic, and
interactive dashboards to answer that. It separates the root cause of the
problem and identifies the source of the patterns. It is also useful in
anomaly detection. And the factors that affect the business. It can be
applied to determine which factors led to improvement in sales.

 Predictive Analysis: What is likely to happen?

 After detecting the root cause of the problem and understanding the causal
relationship between the variables, one would want to know if the event is
likely to happen again? Predictive analysis is all about that. It predicts the
likelihood of an event, forecasting any measurable amount, risk
assessment, and segmenting customers into groups. Since it forecasts the
occurrence of an event, it employs probability. Along with the previous
summarized and root cause analysis, the models use statistics and
machine learning algorithms for predicting future outcomes.

 Prescriptive Analysis: How to make it happen?

The prescriptive analysis is result-oriented. It collaborates the learnings

from the what, why has happened with what is likely to happen to help
with what measures to maximize the primary business metrics. It
prescribes the best course of action, strategies. The prescriptive analysis is
not predicting one individual standalone event but a collection of future
events using simulation and optimization. It is heavily applied in the
financial, social media, marketing, and transportation domains. Its uses
are varied from recommending products or movies to suggesting which
strategies to use to reap maximum returns and minimize risk.

 Cognitive Analysis: Mimicking the human brain to carry out tasks

This advanced type of analysis aims to mimic a human brain to perform

tasks like a human does. It combines technologies such as artificial
intelligence, semantics, machine learning, and deep learning algorithms. It
learns and even generates data using the already available data and
retrieves features and hidden patterns. Real-time data cognitive analysis
is heavily employed in image classification and segmentation,
detection of objects, machine translations, virtual assistants, and chatbots.
What is Data Interpretation?
Once the data has been analyzed, the next progressive step is to interpret
the data. Data interpretation is the process of assigning meaning to the
processed and analyzed data. It enables us to make informed and meaningful
conclusions, implications, infer the significance between the relationships of
variables and explain the patterns in the data.

Explaining numerical data points and categorical data points would require
different methods; hence, the different nature of data demands different data
interpretation techniques.

There are two primary techniques available to understand and

interpret the data:
 Quantitative, and
  Qualitative

Quantitative Methods

The quantitative data interpretation technique is applicable for the

measurable or numerical type of data. The numerical data is of two types:

 Discrete: countable, finite quantities. Eg: the number of ice-creams

 Continuous: Not countable. Eg: height, weight, time, speed,
humidity, temperature
The numerical data is relatively easier to analyze using the statistical
modeling methods, including central tendency and dispersion measures. These
can be visually depicted via charts such as bar graphs, pie-chart, line graphs,
line charts. Tables are also used in representing complex information dissecting
into categories.

There are two most commonly used quantitative data analysis methods are:

 Descriptive Statistics: this field of statistics focuses on describing

the data, its features. It comprises of two categories: measures of
central tendency (mean, median, mode, and measures of dispersion
or variability, which tell how much spread is there in the data or the
data varies.
 Inferential Statistics: this branch of statistics generalizes or infers
how the larger data is, its features based on the sample taken from
this larger data.

Qualitative Methods

Qualitative methods are implemented to analyze the textual and the

descriptive data called the categorical data. Text data is usually unstructured.
The qualitative data is subdivided further based on their characteristics:

 Nominal: The attributes have no ranking or order. Eg: Region, Gender,

Classes in school
 Ordinal: The attributes are ranked or ordered in a sequence. Eg: Grades
 Binary: It has only two categories. Either yes or no, Class 1 or 0.
Unlike numerical data, categorical data cannot be directly analyzed as the
data here is non-statistical, and also, the machines understand only the
language of the numbers.
 So, the text data is first coded and converted into numerical data. There are
different coding approaches available based on the requirement. The text data is
categorized into labels to be used for modeling and interpretation.
For a detailed comparison between the two methods of data interpretation, refer
to this blog on How to Understand the Quantitative and Qualitative Data in Your
Business.
 UNIT II
INTRODUCTION TO LEADING
ACCOUNTING SOFTWARES
Essay questions

1. Discuss about leading accounting softwares

Ans. Introduction:

Accounting software is a computer program that assists bookkeepers

and accountants in recording and reporting a firm's financial transactions. The
functionality of accounting software differs from product to product. Larger firms
may choose to implement a customized solution that integrates a vast amount of
data from many different departments. Small firms often choose an off-the-shelf
product.

Accounting software is an invaluable resource for modern businesses.

Software allows detailed tracking of financial transactions and near-
instantaneous reporting and analysis. Before accounting software, these tasks
had to be performed by hand, using large transaction journals.

Accounting software also allows for the storing of numerous amounts of

data without having to take up physical space. This results in companies
needing less office space because they no longer need large file rooms to store
binders of data. Less office space allows for cost savings.

Depending on the accounting software chosen, representatives from the

software company may visit a customer's office and demonstrate the accounting
software as well as implementing it properly and securely within the firm's
accounting department.

List of Best Accounting Softwares:

The following are the list of best accounting softwares presently in practice
in India:

 Tally
Tally is a popular software among small businesses and accountants. It
has multiple versions of the application to appeal to a wide range of users.
Tally functions as an end-to-end solution to statutory regulations. Its top
features include:
 o Invoice and ledger creation
o Cheque printing
o Instant reports
o Automatic bank reconciliation
o Cost estimates
o Analysis of profits
 Marg
Marg is a taxed-based accounting software that offers advanced features
for businesses within the pharmaceutical and manufacturing industries.
This application is also ideal for growing businesses that are preparing to
e-file their taxes. Some of the top features Marg offers include:
o Automatic bank reconciliation
o Online payment system
o Companies can manage their business from a single platform
o GPS tracking application
o Mobile application to integrate orders and inventory
o Cloud-compatible versions available
 Busy
Busy is an accounting software with three primary versions that
businesses can choose from to best suit their needs. This application also
offers both single-user and multiple users, which makes it a good option
for both small and larger-sized companies. It offers special features for
companies in industries such as manufacturing, retail, trading and
distribution. Busy's top features include:
 Bill generation and printing
 Automatic GSTIN validation
 Automatic reconcilation
 Annual GST summary
 Inventory and stock management
 Cloud compatibility

 Intuit QuickBooks
Intuit QuickBooks is a popular option for freelancers and small and mid-
sized businesses. Quickbooks offers different products and pricing to fit
the business needs of your employer. Its top features include:
o Time tracking
o Inventory recording
o Payroll processing
 o Integration with payment software platforms like PayPal and Square
o Live bookkeeping
o End-of-year tax report
o 24/7 chat support
 Zoho Books
Zoho Books provides simplicity in its accounting software. Many
businesses rely on it to manage their accounting tasks and organise
transactions. Its top features include:
o End-to-end accounting
o Tax compliance
o Mobile app
o Inventory tracking
o Time tracking
o 50+reports including profit and loss, inventory summaries and sales
tax reports
o 14-day free trial
 ProfitBooks
This accounting software is fully online and free for single users. This
budget-friendly software is helpful for start-up companies and individuals
who are preparing for taxes and managing financials. ProfitBooks is an
advanced accounting platform that is user-friendly with a high-quality and
easy-to-navigate website. ProfitBooks' top features include:
o Expense tracking
o Invoice creation
o Inventory management
o Tax record generation
o Inventory flow tracking
o Ability to create multiple warehouses
2. Discuss about busy accounting software

Ans. Introduction:

BUSY accounting software is a robust GST-compliant business accounting

software that makes it easier for you to manage business finances, including
return filing. With BUSY, you can generate GST-compliant invoices, E-Way bills,
and E-Invoice IRN. It also has a GSTIN / HSN validation feature that helps you
ensure valid GSTIN of the party and HSN of the items entered, resulting in error-
free transactions.
Features of BUSY Accounting Software
Here are some of the critical features of BUSY billing software.

 Invoicing

You can easily handle all your related invoicing requirements using BUSY
accounting software. These include GST invoicing, tax inclusive and billing
on MRPs, multiple taxes in a single invoice, and a POS data entry screen
for fast billing.

 GST- Ready

BUSY billing software follows the stringent GST (Goods and Service Tax)
guidelines. It is a joint tax levied by both the State and Central
Government on the supply of certain goods and services. To help you stay
on top of all your GST-related needs, BUSY accounting software lets you
do the following things:
o Automatic tax category creation
o Provision of entering GSTIN and Aadhar number in the account
master
o Let's join the SAC (Services Accounting Code) number and HSN
(Harmonized System of Nomenclature) code in the item master.
o Automatically calculates and adjusts CGST (Central Goods And
Service Tax), IGST (Integrated Goods and Service Tax), and SGST
(State Goods and Service Tax)
o Provides a detailed summary of GST reports

 Inventory Management

BUSY billing software is enriched with inventory management features

and can generate comprehensive analysis reports for different items.

 Checks and Controls

BUSY accounting software lets you stay on top of all user and accounting
activities. It offers modules like user-definable warning alarms, triggers
and alerts, voucher audits, data checklists and provides you a detailed
insight into all tasks.
  Enquiry and Support Management

While BUSY GST software is super easy to understand, it is natural to

have queries while working your way out with the software. For this,
BUSY offers a dedicated in-house inquiry and support management
system. You can either reach out to their helpline or mail your queries.

 Taxation

BUSY accounting software lets you access functions like the generation of
state-wise sales tax reports and have VAT(Value Added Tax) registers as
per customer needs. It also offers modules such as tax-paid stock details
and sales tax surcharges.

Advantages of Using BUSY App

Some of the benefits of investing in BUSY software include-

 Centralized Database

BUSY accounting software lets you centralize key business processes such
as invoicing, customer relationship management, payroll, and inventory
management. With BUSY, you no longer need to waste time and money on
different tools to make your business processes streamlined and efficient.

 Eliminate Manual Bookkeeping

BUSY billing software lets you process front and backend transactions
simultaneously. Moreover, it enables you to create bank deposits, prepare
customer invoices, write cheques and keep your books in order.

 Real-time Monitoring

BUSY lets you create and maintain financial records easily and generate
in-depth reports anytime and anywhere. This lets you monitor financial
records and resolve issues before they escalate into big problems.

 Cash Flow Management

BUSY accounting software lets you keep track of your payables and
receivables. This will help you analyze your present and future cash flow
status. Moreover, it also enables you to keep records of bills and invoices.
Thus, helping you avoid late fees and overdraft charges.
  Shorter Learning Curve

As a business owner, you cannot spend hours learning new software.

However, BUSY accounting has significantly considered this and optimized
its tool to have a shorter learning curve. This means even if you have zero
knowledge of accounts, you can use the system effectively and minimize
accounting errors and reconciliation issues. Besides, BUSY also provides
adequate customer and training support to help you make the best use of
the software.

 Scalable Solutions

BUSY offers excellent customization capabilities and scalable database

functionality. Be it a startup, a small business, or an enterprise; BUSY has
something for each of them.

 Organized Processes

It is straightforward to misplace manual invoices and lose them. BUSY lets

you store all data and information in a single location. Moreover, it lets you
review, reprint, and resend them without any hassles. You can easily
search for invoices with invoice numbers, amounts, and names.

 Actionable Reports

BUSY accounting software lets you calculate your profits and learn which
customers generate the most revenue for your company. You can use it to
get the exact information you need and save precious time.
BUSY Accounting Software Price
Here is an overview of BUSY software prices in India.

 Basic: INR 9000 (Single User) and INR 22500 (Multi-User)

 Standard: INR 13500 (Single User) and INR 33750 (Multi-User)

 Enterprise: INR 18000 (Single User) and INR 45000 (Multi-User)

3. Discuss about marg accounting software

Ans. Introduction:

Marg software is the only Real Accounting & Inventory Software which
gives you 100% control on your business. Due to easiness, flexibility, self-
customization options and time to time up-gradations are the major reasons
behind its success. That's why in a very short period i.e. August 2002, it is
widely adopted by more than 10 Lakh plus users.
Key Features

 Financial Account with IT-ST-Auditors Reports

 State/Country wise Sales Tax Reports & Registers
 State/Country wise VAT & E-Returns
 Operator wise Powers & Boundations
 Multi Location Inventory Management
 TDS / Excise / Service Tax
 Self-designed Invoice & other Formats
 Sales & Purchase Order Management
 Challan & Counter Sales
 Post Dated Cheque Management with Bank Paying Slip
 Direct E-Mail & SMS Facility
 1000+ Sale, Purchase, MIS & Gross Profits Analysis
 Self-definable Currency Symbols
 Provision to show bill value in 5 Currency self, Dollar, Pond Euro,
Rubbles
 Multi Store with Separate store for Breakage / Expiry / Waste
 Manufacturing (BOM) on Issue/Receipt, Direct Receipt, Reverse & Lot
Bases
 Zoom-In-Zoom-Out (Eagle View)
 Photo / Logo provisions to make your printouts attractive
 1750+ Setups to customise MARG on customer site
 Softcopy of bill direct Email to party
 Purchase Import from Excel, DBF, Csv, Txt files (No need to feed manual
purchase)
 Self-designed Item / batch / size wise BARCODE
 Pdf, Word, Excel, Html, Rtf, Dot matrix View & Print
 Separate pre-defined Ports/Printers for Bills & Reports
 18 self-defined Hot keys & My Menu with unlimited keys
 100's of utilities like multi edit to make your business smooth
Sales Bill Attraction
In Marg, billing system is very much advanced yet easy to use. In our
views, customer spend more time on their billing so that we are always focused
on the ways through which you can do your billing with the less use of enter key.
Cash/Credit Management, Challan/Order Loading, Item Searching, Real Time
with Live Balances on Multi-user, Light Fluctuation Security options etc are
incomparable.

Multi Options
You can operate MARG with multi provisions.

 Multiple Companies
 Multi Unit
 Multiple Godowns
 Multi Currencies
 Multi Locations
 Multi Language
 Multiple Financial Years
 Multi Firm Billing on single Bill

Visual & Audio Indications

In Marg, Errors or Indications can be presented through audio or visual
alerts in case of any error.

 Negative Cash
 Negative Stock
 Minimum & Maximum Level
 Profit / Margin Loss on Item / Bill
 Budget & Credit Limit Cross
 Backup Indications
 Near Expiry & Expired Item
 Message from supervision / other user
4. Discuss about quick books accounting software

Ans. Introduction:

QuickBooks is a popular accounting solution for small businesses or those

just getting themselves off the ground. But just because it’s the first name that
comes to mind, does that mean it’s the best choice? Sometimes it is, sometimes it
isn’t. Your company’s unique answer to this question rests on what you need
out of an accounting solution and how fast you envision your company growing.
 If your business model is simple and all you need is an accounting tool,
QuickBooks may be a great fit for you. However, if you think you will need other
solutions like e-commerce, warehouse management, customer relationship
management or HR management in the not-too-distant future, you will find
QuickBooks limited. That’s because what you need is an ERP.
Understanding the difference between accounting software and an ERP is often
the single largest factor in deciding whether QuickBooks is the right fit for you.
But here are some QuickBooks strengths and weaknesses worth considering.
Advantages of QuickBooks
 Easy Financial Management
QuickBooks simplifies financial management tasks, even for small
business owners without a financial background. It provides a user-
friendly interface and intuitive features that enable businesses to
efficiently handle core accounting processes. From invoicing and expense
tracking to bank reconciliation and financial reporting, QuickBooks
automates and streamlines these tasks, saving time and reducing the
potential for errors.
 Accurate Bookkeeping
With QuickBooks, businesses can maintain accurate and up-to-date books.
The software automates the recording of transactions, ensuring that all
financial information is correctly captured and categorized. This accuracy
enables businesses to generate reliable financial statements, such as
balance sheets and income statements, which are essential for
understanding the financial health of the organization and making
informed business decisions.
 Time and Cost Savings
QuickBooks helps businesses save time and reduce costs in multiple
ways. It automates repetitive tasks, such as data entry, invoicing, and
payroll processing, which reduces manual effort and minimizes the
likelihood of errors. The software also provides built-in tools for tracking
expenses, inventory management, and generating financial reports,
eliminating the need for additional spreadsheets or specialized software.
By streamlining processes and improving efficiency, QuickBooks allows
businesses to focus on core operations and strategic initiatives.
 Business Performance Tracking
QuickBooks offers valuable insights into business performance through its
reporting and analytics capabilities. The software generates
comprehensive financial reports, allowing businesses to monitor key
metrics, track revenue, analyze expenses, and assess profitability. With
these insights, businesses can identify areas for improvement, make
informed decisions, and effectively manage their financial resources.
 Flexibility and Scalability
The software is known for its flexibility and scalability. There are various
versions of QuickBooks, some are cloud based, others are designed for the
 desktop. Depending on which you choose, you’ll find a wide variety in the
number of users allowed and pricing plans.
Whether you’re a small startup or an established enterprise, QuickBooks
can adapt to your needs. The software offers different versions and
editions, providing features and functionality suitable for different
business requirements. QuickBooks also allows for easy data migration,
enabling businesses to seamlessly transition as they grow or change their
accounting processes.
Disadvantages of QuickBooks
 Open to manipulation
QuickBooks, unlike more robust solutions, makes it very easy to
manipulate the data you put into it. This is a double-edged sword. On one
hand, if you make a mistake in your accounting entries, it’s very easy to
go in and fix that. But this exposes QuickBooks users to the possibility that
someone could either make unneeded changes by accident or, worse, if
someone with nefarious intentions wanted to, they could cook your
company’s books with little effort.
 Limited File Size and Users
As it’s built for small businesses, you might expect that QuickBooks
would have some limitations on how many files or users it could handle at
one time, and you would be right. If all a sudden you need to handle a
large transaction volume or have several people working in the system at
once, there will come a point where the software’s performance will suffer.
Once they reach this limit, users report it becoming very sluggish
and more susceptible to random crashes. How big of a problem this is
depends on how fast you expect your company to grow.
 Lackluster Invoicing
Are you planning to use QuickBooks to invoice your customers and
business partners? Do you want to customize those invoices and send
them out via email?
You should know the options be QuickBooks invoicing system offers are
very limited compared to what you might find in an ERP. Even if this
doesn’t bother you, expect the invoicing to take some time to set up. So,
you probably won’t start using that feature on day one.
 Limited Integration Opportunities
If you’re planning to connect QuickBooks with other tools down the road as
your business grows, it may disappoint you. Many users report
frustration with the integration options QuickBooks offers. So, if you
depend on a certain QuickBooks integration, you must research its
availability in detail before buying.
 Customer Support Focus on to Peer to Peer
Like many vendors, QuickBooks offers an online knowledge base, where
users can go to find help articles. However, some users report theirs is not
as robust as one would expect. And, although it is possible to contact
 QuickBooks for support, the focus of the company’s strategy in this area is
its online forums.
Here, QuickBooks users can post questions about the software and get
answers from other QuickBooks users. These communities are very active
and well-traveled, so depending on your point of view, this may or may not
be an issue. Just be aware this will be your primary avenue of support
should you have issues with QuickBooks.
5. Discuss about Zoho accounting software

Ans. Introduction:

Zoho offers accounting software called "Zoho Books." Zoho Books is designed
to help businesses manage their finances efficiently. It comes with a range of
features to handle accounting, invoicing, expense tracking, and more. Please note
that the features and capabilities of software may have evolved since that time,
so I recommend visiting Zoho's official website or contacting their sales team for
the most up-to-date information. Here are some of the key features typically
associated with Zoho Books:

 Invoicing: Create and customize professional invoices. Send invoices

to customers via email or print them. Set up recurring invoices for
regular clients. Accept online payments through various payment
gateways.
 Expense Tracking: Record expenses and categorize them for easy
tracking. Capture expense receipts using a mobile app. Reconcile bank
and credit card statements with expenses.
 Bank Reconciliation: Automatically import bank and credit card
transactions. Reconcile bank statements to ensure accurate
accounting.
 Inventory Management: Manage inventory levels and track stock
movements. Get alerts for low stock levels. Categorize and record
items with SKU details.
 Financial Reporting: Generate a variety of financial reports,
including profit and loss statements, balance sheets, and cash flow
statements. View real-time financial data to make informed decisions.
 Sales and Purchase Orders:Create and manage sales orders and
purchase orders.Convert orders into invoices and bills.
 Expense Reporting:Create and submit expense reports for
reimbursement.Track employee expenses and approvals.
 Time Tracking:Record billable hours and expenses for
projects.Convert tracked time into invoices.
 Multi-Currency Support:Perform transactions in multiple
currencies.Automatically update exchange rates.
  Tax Management:Calculate taxes and apply tax rates based on your
location and business type.Prepare and file tax returns.Stay compliant
with tax regulations.
 Collaboration and User Permissions:Collaborate with team
members and assign roles and permissions.Control who can access
and edit financial data.
 Mobile Access:Access Zoho Books from mobile devices using
dedicated apps.Manage finances on the go.
 Integration:Integrate with other Zoho products and third-party
applications for extended functionality.
 Customization:Customize templates, forms, and reports to match
your brand.
 Data Security:Zoho Books typically offers data encryption and secure
access controls to protect your financial information.
Remember that Zoho Books may have added new features or made
updates to existing ones since my last knowledge update, so it's a good idea to
explore their official website and consult with their support or sales team to get
the latest information on the software's capabilities and pricing.

6. Discuss about Tally accounting software

Ans. Introduction:

Modern technology allows accounting professionals to handle their work

with more flexiblity and mobility. Computalized system help business firms to
record financial transactions which can later be tracked anytime anywhere.
Accounting firms can now avail beneefits like easy and efficient data collection,
improved data quality, sppedy data validation and many more. There are many
accounting software available in market which can help in computerized
maintainance of accounts.

Tally is the accounting software that is designed to integrated and

automate all types of business transactions. Every business has various
process, ranging from simple to complex. As your business grows, it acquires
new customers and ventures into newer markets. Hence, you need to maintain
accurate and updated accounting and inventory records. Tally is a cost-effective
accounting software that allows you to simplify, integrate and stremline all you
business transactions. Tally.ERP 9 enables you to view information of any
period, compare data across companies and financial periods, maintain account
details and generate reports. Tally.ERP 9 enables quick and correct decision,
thus providing better control over the business.
Benefits:
The benefits of Tally.ERP9 are as follows;

 Tally is the world’s most powerful concurrent Multi-Lingual Integrated

Business accounting software. Users can create their own names for their
accounting data in their own desired language.
 Creation of invoices with single items, multiple items, multiple tax types,
and even multiple currencies.
 Invoices with multiple currencies can be printed with the value breakups of
the transactions in terms of the different currencies.
 Tally enables its users to work with multiple companies accounts
simultaneously and update information in real-time as soon as voucher
entries are made.
 Tally allows its users to access their account remotely using the
http://Tally.NET facility, which allows the users to access their account on
an internet connection.
 Tally accounting software can flawlessly connect with various Microsoft
applications.
 Small and medium enterprises (SME) need ERP software to manage three
critical functions – accounting, inventory, and compliance, as it comes with
One Stop Solution for the same.
 Tally provides comprehensive solutions revolving around accounting
principles, inventory and data integrity.
 Tally software comes with easy to use interface, thereby making it simple
to operate.
 With Tally.ERP 9, crucial decisions can be taken by looking at critical
financial reports which are available on the click of a button.
 A single connection can support multiple users.
 ERP9 can be easily used in conjunction with the Internet making it
possible to publish global financial reports.
 ERP 9 seamlessly allows handling accounting, inventory, and compliance
within a single software as it becomes easier for business owners
 Users can start recording transactions and creating invoices within
minutes of installation.
 The software is so reliable and robust that even on occasions of power
failure or machine shut down while under working condition, the data
does not get affected as it is safely stored in the Tally database.
 With Tally.ERP 9, Tax Consultants and Auditors can remotely perform
audit without the hassle of transferring the data and can leave their
comments on vouchers for business owners to take further actions.
 ERP9 provides flexibility to create masters on the go because very often
businesses need to create different types of vouchers.
 UNIT III
TALLY ERP-9
1. Discuss about Tally ERP-9

Ans. Introduction:

Modern technology allows accounting professionals to handle their work

with more flexiblity and mobility. Computalized system help business firms to
record financial transactions which can later be tracked anytime anywhere.
Accounting firms can now avail beneefits like easy and efficient data collection,
improved data quality, sppedy data validation and many more. There are many
accounting software available in market which can help in computerized
maintainance of accounts.

Tally is the accounting software that is designed to integrated and

automate all types of business transactions. Every business has various
process, ranging from simple to complex. As your business grows, it acquires
new customers and ventures into newer markets. Hence, you need to maintain
accurate and updated accounting and inventory records. Tally is a cost-effective
accounting software that allows you to simplify, integrate and stremline all you
business transactions. Tally.ERP 9 enables you to view information of any
period, compare data across companies and financial periods, maintain account
details and generate reports. Tally.ERP 9 enables quick and correct decision,
thus providing better control over the business.

Features of Tally:

Tally is a simple accounting software whose popularity rests on may of its

user-friendly features. Some of these features are as follows:

 Concurent multi lingual capability: Supports almost all the major

Indian and International languages. You can enter information in the
language of your choise, view reports in another language and print them
in yet another language.
 Data reliability: Performs data integrity checks at regular intervals to
save all the latest modification. This ensures that no data is lost even if
there is a power failure or abrupt shut down of the machine.
 User defined security levels: Supports multiple security levels thereby
allowing multiple users to work on a system at various levels. In this
case, every user defines his/her own level of requirements, based upon
which rights are granted to him/her to use specific features of Tally.
 Internal backup/restore: Contains in-build opitions to restore and take
the backup of data. The user can take the backup of data in the local
hard disk or any external media.
 Multi-directory of company management: Allowes users to crete more
than one directory to store data
 Import/export of data: Facilitates importing and exporting data
between Tally and other software.
 Graphical analysis of data: Allows users to represents data in
graphical formats, such as pie charts and graphs.
 Ability to publish reports and documents on the internet: Allows
the users to pubilish e-mail repots and documents directly from Tally.
 Print preview: Allows users to view reports and their layouts, prior to
actual printing.
 Data synchronisation: Allows users to synchronise and update the
data of a company across the multiple locations; thereby, enabling fast
and easy access/exchange of business information among different
offices and branches.
 Remote login access: Allows users to access data from anuwhere.
 License management: Refers to the mechanism that addresses all the
license related activities. It also allows the activation of single user and
multi user licenses.
 Control center: Helps to create a user with predifined security and
maintain account related information.
 Support center: Allows users to send their quires on the functional and
technical aspects to the help centers.
 Look and feel: Provides a new look and feel with a new information
panel at the bottom of the Tally.ERP 9 screen, which displays the current
version, latest version, license, configuration details and calculator.
 Tax calculation: Allows users to calculate the TDS and GST
automatically.
 Manage Payroll: Allows users to manage the payroll of the organization.
Advantages of Tally:
The benefits of Tally.ERP9 are as follows;

 Tally is the world’s most powerful concurrent Multi-Lingual Integrated

Business accounting software. Users can create their own names for their
accounting data in their own desired language.
 Creation of invoices with single items, multiple items, multiple tax types,
and even multiple currencies.
 Invoices with multiple currencies can be printed with the value breakups of
the transactions in terms of the different currencies.
 Tally enables its users to work with multiple companies accounts
simultaneously and update information in real-time as soon as voucher
entries are made.
 Tally allows its users to access their account remotely using the
http://Tally.NET facility, which allows the users to access their account on
an internet connection.
 Tally accounting software can flawlessly connect with various Microsoft
applications.
 Small and medium enterprises (SME) need ERP software to manage three
critical functions – accounting, inventory, and compliance, as it comes with
One Stop Solution for the same.
 Tally provides comprehensive solutions revolving around accounting
principles, inventory and data integrity.
 Tally software comes with easy to use interface, thereby making it simple
to operate.
 With Tally.ERP 9, crucial decisions can be taken by looking at critical
financial reports which are available on the click of a button.
 A single connection can support multiple users.
 ERP9 can be easily used in conjunction with the Internet making it
possible to publish global financial reports.
 ERP 9 seamlessly allows handling accounting, inventory, and compliance
within a single software as it becomes easier for business owners
 Users can start recording transactions and creating invoices within
minutes of installation.
 The software is so reliable and robust that even on occasions of power
failure or machine shut down while under working condition, the data
does not get affected as it is safely stored in the Tally database.
 With Tally.ERP 9, Tax Consultants and Auditors can remotely perform
audit without the hassle of transferring the data and can leave their
comments on vouchers for business owners to take further actions.
 ERP9 provides flexibility to create masters on the go because very often
businesses need to create different types of vouchers.
2. Discuss about Tally start up screen

Ans. Tally Screen Components

Tally Screen Components – After you startup the Tally ERP 9
Application, the welcome home screen of Tally ERP 9 – Power of Simplicity
displays on the screen during the Tally software loading on compute system.
After loading the Tally software, the Tally ERP.9 startup screen displays on the
screen as shown below.

The home screen of Tally ERP 9 contains the following components

 Title Bar
 Horizontal Button Bar
 Close Button
 Gateway of Tally
 Buttons Toolbar
  Calculator area
 Info Panel
 Data and Time

Complete details of Tally Screen Components

 Title Bar: It displays the Tally software that you are using.
 Horizontal Button Bar: It helps to choose Language, Keyboard
settings, Control centre, support centre and Help.
 Close Button: By click on this button or ctrl+m, tally window closes
 Task Bar: Displays the task of Tally ERP 9
 Gateway of Tally: It displays menu, screen, reports
  Info Pannel: Information panel displays the tally version, license details
and configuration details
 Calculation Area: Calculation area will be used for calculation
functions.
 Buttons Tool Bar: It displays the buttons that enables for immediate
interaction with Tally.ERP 9. It displays only the buttons that are
applicable to the current task.
 Date and Time: Displays current data and time.
3. Discuss about Gate way of Tally

Ans. Introduction:

The Gateway of Tally is the initial screen or control panel that users encounter
when they start Tally.ERP 9. It serves as the primary navigation hub for
accessing various accounting and financial management functions. The Gateway
of Tally provides a user-friendly interface that simplifies the process of recording,
managing, and analyzing financial data.
Key Features And Functions Of The Gateway Of Tally:

 Company Selection: Upon launching Tally.ERP 9, users can select the

company they wish to work on from a list of available company data. This
allows for organized management of multiple companies’ financial records.
 Configuration and Preferences: Users can access and modify various
configuration settings and preferences from the Gateway of Tally. This
includes customizing features like taxation, reporting, and user access control.
 Accounting Vouchers: The Gateway of Tally provides direct access to
various types of accounting vouchers, such as sales vouchers, purchase
vouchers, payment vouchers, and receipt vouchers. Users can enter financial
transactions from this screen.
 Display and Reports: Users can quickly view financial reports and
statements from the Gateway of Tally. This includes balance sheets, profit
and loss statements, and other critical financial reports.
 Inventory Management: Tally.ERP 9 encompasses inventory management.
The Gateway of Tally allows users to access inventory-related features, such
as stock summary, stock items, and units of measure.
 Payroll: Users can manage payroll-related functions, including employee
data, salary structures, attendance, and payroll processing, right from the
Gateway of Tally.
 Utilities: The Gateway provides access to various utilities, such as data
backup, restore, and data synchronization, ensuring data integrity and
security.
4. Discuss about company creation

Ans. Creation of company in Tally:

Whenever we want to maintain accounts in Tally for a particular entity, the

first step is to create the record of the entity in the Tally Package. This is known
as creation of company. Tally provides the facility of creating any number of
companies in Tally. It means in one Tally package we can maintain accounts for
any number of business entities. For that we just have to create that entity in
Tally.

For creating the company following is the command:

Getting Functional with Tally.ERP 9

Tally.ERP 9 start-up Tally.ERP 9 can be started in any of the following

ways:

Click on Start > Programs > Tally.ERP 9 or double click on the Tally.ERP 9
icon on your desktop.
 Open your Tally ERP9 software. If you are opening the software first time
after installation you will have a screen like below

In this window there is a box called ‘Company Info’. Inside there is option
of ‘Create Company’. Company can be created by pressing ‘Create Company’
option in this window. User can navigate through this menu by using Arrow keys
or by pressing letter ‘C’ in the key board.

In this screen, enter all the details asking by software to create company.
This detail will be used in your report printing and for complying statutory
reqirements.

Let’s examin each option in this list:

 Directory: This is the data path, where Tally ERP9 store company data.
You can change it if required. But the cursor by default rests on second
option Name. because normally there is no need to change the data
directory if you are taking a regular data backup. By default Tally data
will save in C:\User\public\Tally.ERP9\Data Keep it same recommended.
 Name: Name of your company
 Mailing Name: If you have different mailing name enter that name here.
 Address: Enter address of the company.
 Country: Country name where your business exists.
 State: Enter state name, in which business is carries.
 Pin code: The pin code of the area.
 Contact details:
o Enter contact details like
o Telephone no,
o Mobile no, fax no,
o Email and website details.
 Financial year details:
Financial year from: Normally financial yeat starts from 1st April and ends
at 31st March. But in some statrs from 1st January to 31st December. Enter
whatever your case is.
 Book begnning from:
In most cases book begnning date is the financial year starting date, but
sometimes it differ like, starting a company in the middle of a financial
year and migrating from manual accounting to Tally ERP9 may change the
book begnning date. Enter the book biggning date here.
 Security Control:
o Tally Valut Password:
If you are giving password in this option, the Tally ERP9 data will
encrypted and losing password will render data unsuable.
o Use security control:
This is another section where administrator can be created.
Administrator can create user and define their rights, tracking their
activities in Tally ERP9. Enable by typing yes will create some option
in the screen. Enter name of Administrator and Password here.
o Use Tally Audit Features:
This will enhance the capability of an adminstrator to an auditor
level. Enable if you want to track the data changes and other
activity of users.
 o Disallow opening in educational mode:
Tally ERP9 software provides a free version called Education
version. You can disable accessing data by Typing ‘Yes’ here, when
software are in educational mode.
 Base currency information:
Under this option, the currency details of selected country will populated
automatically. Base currency symbol, formal name of currency etc, change
if you are dealing with different currency.
5. Discuss about alter and delete of company

Ans: Altering a Company

To alter details of an existing company

 Go to Gateway of Tally >click F3 : Cmp Info . > Alter .

 Press Enter .
 Select the company from the List of Companies .
 Press Enter to view the Company Alteration screen.
 Make necessary changes in the required fields.
 Press Enter to save.
Deleting a Company

To delete a company

 Select the company to be deleted.

 Go to Gateway of Tally > F3: Cmp Info .
 Select Alter .
 Press Enter .
 Select the company to be deleted.
 Press Alt+D to delete. A confirmation message appears as
shown below:
 Press Enter to delete the company.
Note: Deletion of a company is irreversible. The company is permanently
deleted from the system.
6. Discuss about backup and restore of company

Ans. Backup/Restore

It is a good practice to take back up of your data at regular intervals to

avoid any loss to data. Tally.ERP 9 provides you a facility to take back up of
your data and restore as and when required.
Backup Data

Taking a backup of your data at regular intervals helps retrieve your

backed up data when your existing data is lost. Using Tally.ERP 9, you can
easily take a backup of your company data any time and restore it when you
need.
o Go to Gateway of Tally > F3 : Cmp Info > Backup to view
the Backup Companies on Disk screen.
o Source - The folder path where your company data is stored. By
default, the folder path of your existing company data is displayed
here.
o Destination - The folder path where the data backup has to be
stored. You can store the backup locally on your computer, on any
external storage device, or on a storage space on the network.
o Select the required company from the List of Companies .
Select All items to back up data of all the companies.
o Press Ctrl+A to initiate the backup process.
Restore Backup

You can restore the data of companies for which you haven taken a
backup. When your current company data is lost or corrupted, you can restore
your last backed up data using the Restore option in Tally.ERP 9.
o Go to Gateway of Tally > F3 : Cmp Info > Restore to view
the Restore Companies screen.
o Destination - The folder path where your company data is to be
restored. Do not restore backup data in the folder where your company
data exists, since it may overwrite the existing data.
o Source - The folder path where the backup file is stored. You can
restore data stored locally on your computer, on any external storage
device, or on a storage space on the network.
o Select the required companies from the List of Companies . Select All
items to restore data of all companies.
o Press Ctrl+A to restore the data backup.
 UNIT IV
TALLY ACCOUNTING MASTERS
1. Discuss about Tally Accounting Masters

Ans. Introduction:

Accounting Data can be recorded and maintained in Tally.ERP 9

Accounting Software with the help of Masters and vouchers. We can change data
in Tally.ERP 9 whereever, and as many times as we wish. Masters are the
containers of the Accounting Data. Accounting Masters are the predefined
structure and content of accounting information system. It includes ledgers in
chart of accoutns and the groups under which they are classified.

So masters are like default templets into which information is entered

using vouchers. The templets or masters gives the shape to the information we
entered into it. Information entered can be different each time but the masters
allow us to have a standard formart and structure so that we manage our
business as we need.

Data stored in Masters is independent. In Masters we can only create,

alter, display or delete the Ledger, stock and their inter-related elements like
Groups, Stock Categories, unit of measures.

Masters can be classified into:

 Accounting Masters
 Inventory Masters
 Payroll Masters
 Statutory Masters

In Tlly.ERP 9 accounting masters are available in Gateway of Tally

Accounting Masters mainly consists of three parts

 Groups
 Ledgers and
 Vouchers
2. Discuss about create, alter and delete Groups in Tally

Ans. You can create a single group or multiple groups in Tally.ERP 9 and
configure the details as per your requirement. You can also view, alter or delete
these groups.

Create account groups one-by-one

 Go to Gateway of Tally > Accounts

Info. > Groups > Create ( under Single Group )
 Enter the Name of the group.
 Enter the Alias name, if required.
 In the field Under , from the List of Groups displayed, select the parent
group under which the group has to be classified. For
example, Indirect Expenses .
The Group Creation screen appears as shown below:

 Click Yes to accept the screen.

A new group created under primary will not be reflected in reports until
you pass masters/transactions for that group.
View account groups one-by-one in display mode

 Go to Gateway of Tally > Accounts

Info. > Groups > Display ( under Single Group ).
 Select the name of the group required from the List of Groups displayed.
The ledger display screen appears as shown below:
Note: In the display mode, group details can't be modified.
Alter a Group

The details entered in a group can be modified when required.

 Go to Gateway of Tally > Accounts
Info. > Groups > Alter ( under Single Group ) .
 Select the name of the group required from the List of
Groups displayed.
 Make the necessary changes in the Group Alteration screen.
 Click Yes to save the changes.
Create Multiple Groups in one-go

You can create, edit or delete multiple groups in Tally.ERP 9.

 Go to Gateway of Tally > Accounts Info. > Groups > Create

(Multiple Groups).
 Select the group category in the field Under .
 Enter the Name of the group. The screen appears as shown below:
  Select All Items in the field Under to create multiple groups of different
categories.
Note: You can add any number of sub-groups to an already created or selected
group. The sub-groups inherits the characteristics of the parent groups.
A new group created under primary will not be reflected in reports until
you pass masters/transactions for that group.
Display Multiple Groups

 G o to Gateway of Tally > Accounts Info. > Groups.

 Click Display (Multiple Groups). The Multi Group Display screen
appears as shown below:

 Select the g roups to display from the List of Groups or select All
Items to display all groups.
Note: Select F4: New Parent or press Ctrl+F4 to select any other group in the
display mode.
Alter Multiple Groups

 Go to Gateway of Tally > Accounts Info. > Groups > Alter (Multiple
Groups) .
 Select the g roup from the List of Groups . The Multi Group
Alteration screen appears as shown below:

 Change the details as required and click Yes to save changes.

Delete a Group

Groups can be deleted from the alteration screen. You cannot delete groups
from the Multiple group Alteration mode.
  Go to Gateway of Tally > Accounts
Info. > Groups > Alter ( under Single Group ).
 Select the group from the List of Groups .
 Click D : Delete .
 Click Yes to confirm deletion.
3. Discuss about create, display, alter and delete ledger in Tally

Ans. Accounting Ledgers:

After creating the company in Tally, Ledger creation is the preliminary

steps to start with recording of transactions. Ledger is a devise used to record
the effect of transactions on the assets, liabilities and capital of an enterprise.
We can defined ledger as “ A ledger is the actual account head to identify your
transactions and are used in all accounting vouchers.

A ledger is the most important part of a company’s financial records. It

constitute the records of each transaction, such as withdrawal or deposit of
money through vouchers. Tally ERP9 contains the following predefined ledgers:

 Cash: Refers to the ledger that is created under the cash-in-hand group. In
this ledger, you can specify the opening balance on the basis of the
beginning date on the account books of the company.
 Profit & Loss A/c: Refers to the ledger that is created under the primary
group. The profit and loss of the previous financial year is considered as
the opening balance for this ledger.

Creation of Accounting Ledger:

When we record the transactions first time in Tally, we have to create

Ledgers. However, once a Ledger is created in particular company, it need not to
be created again whenever we have to record transactions. In Tally ERP9, we
can create ledger in two ways as given below:

 Single ledger creation

 Multiple Ledger Creation

Single ledger creation:

Here we can create one ledger at a time. Following are steps for creating
single ledger in Tally.
  Go to Gateway of Tally > Accounts Info > Ledger > create (Single
Ledger Creation)
 Enter Name of the ledger
 Select Group from the List of Groups
 Press Enter

The ledger creation screen appears as

Multiple Ledger creation:

Here we can create different ledgers at one time. These ledger at one go.
These ledger may be related to different groups or may belong to particular
group.

To create Multiple Ledgers at once, follow the below given steps:

 Go to Gateway of Tally > Accounts Info > Ledgers > multiple ledgers >
create
 From Under Group field select all items
 Under name of ledger enter the name of account youwant to create
 Select group from the list of groups
 Press enter and move to next line
 Similarly, select the other ledgers
 Press enter or Y to accepct
4. Discuss about Inventory Masters in Tally

Ans. Introduction:

Inventories occupy the most important position in working capital

management of a business enterprises. It constitutes the largest component of
current asset in most business concerns. The working capital is largely governed
by the turnover of inventory. It is therefore quite natural turnover that inventory
which helps in maximize profit occupies the most significant place among current
assets. The over stock of inventory is unsuitable due to the large amount of
investment on it as well as other cost associated with it.

Inventory is the stock that firm maintains to meet its future requirement for
production and selling. The basis reason for holding inventory is to keep up the
production activities unhampered. Inventories are a part of current assets, which
are used within one year. Inventories are the physical articles held for resale for
use in manufacturing a production or for consumption in carrying on business
activity such as merchandise, goods purchased by the business which are ready
for sale.

Inventory masters:

Inventory accounting includes recording of stock details like the purchse of

stock, the sale of stock, stock movement between storage locations or godowns
and providing information on stock availability. Tally.ERP 9 makes it possible to
integrate the inventory and accounting system. In Tally.ERP 9 all the inventory
information is maintained in Inventory Masters. Masters are the containers of the
inventory data. These are the heads, which will be set once and used in many
places for inventory records. In Masters we can only create, alter, display or
delete the stock groups, stock items and their inter-related elements like stock
categories, unit of measures, godowns etc. In newly created company the
inventory info. menu comprises of four types of Masters, viz.

 Stock Groups
 Stock Items
 Voucher types
 Units of Measures

Need of creating inventory Masters:

Supposedly if you have one Product with 50 listings on various

Marketplace like Amazon, Walmart, and many other Marketplace. If the Product
is Sold from any of your Marketplace then its hard to update inventory on all
marketplace. So here comes “Inventory Master”, you can select these similar
listing and create a Group of that listings. Then on that listing, you Can update
the stock quantity and it will apply to all your Marketplace. We Also have a
feature to auto-update stock on all marketplace also to auto Update the Reversal
Stock quantity on all Marketplace.

Note:

 After Shipped Product your Stock quantity will be auto-updated on all

marketplace but if you get return product in your warehouse, then you
need to update the stock manually into your Inventory Master. After
updating the inventory master, it will apply to all the Marketplace.

 If you Receive the cancel request, from a customer or from Amazon or

from any other marketplace, then you need to manually cancel the order
and update the stock manually into your Inventory Master. After
updating the inventory master, it will apply to all the Marketplace.

5. Discuss about creation of stock groups

Ans. Stock Grooups:

Stock groups in Inventory are similar to Groups in Accounting masters.

Stock Groups are provided to help in the classification of stock items.
Classification is done based on some common behaviour. User can group stock
items under different stock group to reflect their classification based on some
common functionality. Items having same features can be placed under one stock
group. It enables you to locate stock items easily and report their details in
satatements.
 Tally does not provide any pre defined Groups under Inventory. Suer can
create its own inventory groups depending upon need of the business. New
Group can be created in Tally under Single Group Creation Mode or under
Multiple Group Creation Mode.

Creation of Single Stock Grooup:

In single group creation, all inventory groups are created one by one.

This can be done as follows:

 Go to Gateway of Tally > Inventory Info. > Stock

Groups > Create (under Single Stock Group ).
 Enter the Name of the Stock Group.
 Enter additional name apart from primary name [if required] in the
field Alias . You can create any number of additional names.
 Specify whether it is a primary group or a sub-group of another group
in the field Under , by selecting from the list.
 Press Alt+C to create a parent group, if you do not have it in the list.
 The field Should quantities of items be added pertains to
information on measuring the units of the Stock Items that you would
categorise under the Stock Group . The Stock Items categorised under
the group should have similar units for them to be added up. You
cannot add quantities in Kgs to quantities in Pcs .
 Enable the option Set/alter GST Details to define the GST rate .

 Press Enter to save.

Display Single Stock Group

You can display the existing Stock Group in Single mode and multiple
mode, since it is only display Tally.ERP 9 does not allow you to alter any
information in display mode.

 Go to Gateway of Tally > Inventory Info. > Stock Group >

display (under Single Stock Group).
 Select the Stock Group whose particulars you want to display from
the List of Groups . The Stock Group Display screen appears.
Alter a Group

The details entered in a group can be modified when required.

 Go to Gateway of Tally > Accounts Info. > Group > Alter (under
Single Group).
 Select the name of the group required from the List of
Groups displayed.
 Make the necessary changes in the Group Alteration screen.
 Click Yes to save the changes.
Create Multiple Stock Groups

Tally.ERP 9 allows you to create Stock Groups using single or multiple

options.

 Go to Gateway of Tally > Inventory Info. > Stock Groups > Create
(under Multiple Stock Groups).

 Select the parent group under which you want the new groups to be
created from the List of Groups .
 Enter the Name of the Stock Group.
 If you select any group other than All Items in the Under
Group field, then this column is filled in automatically with the
selected Group name and the cursor skips this column. This will
speed up data entry.
  If you select All Items in the Under Group field, the cursor does
not skip this field and allows you to enter the parent group for each
one of them.
 In the field Should Quantities of Items be Added you can select
whether units of the Stock Items under Stock Group are to be added
or not.
Display Multiple Stock Groups

 Go to Gateway of Tally > Inventory Info. > Stock

Groups > Display (under Multiple Stock Groups ).
 Select the Stock Group from the List of Groups .

 If you select All Items from the List of Groups , all the Groups
and sub Groups are displayed.

 If you select Grade One from List of Groups , all the sub Groups
related to Grade One will be displayed.
 Alter Multiple Groups

 Go to Gateway of Tally > Accounts

Info. > Groups > Alter (Multiple Groups) .
 Select the g roup from the List of Groups . The Multi Group
Alteration screen appears as shown below:

 Change the details as required and click Yes to save changes.

Delete a Group

Groups can be deleted from the alteration screen. You cannot delete
groups from the Multiple group Alteration mode.
 Go to Gateway of Tally > Accounts
Info. > Groups > Alter ( under Single Group ).
 Select the group from the List of Groups .
 Click D : Delete .
 Click Yes to confirm deletion.
6. Discuss about creation of stock items

Ans. Inventory Items Or Stock Items:

Stock items are goods that a business Purchase, Manufacturer or Sell.

Stock Items in the Inventory transactions are similar to ledgers being used in
accounting transactions. Therefore, stock items are important in an inventory just
as ledgers are important in accounting. Like Ledgers, stock items are the primary
inventory entity. You will use stock items while recording their receipts and
issues. This is lowest level of information about inventory. Each item that is
required to be accountanted for, needs to be created.
In Tally, stock items can be created using two methods which are as follows:

1. Single Stock Item

2. Multiple Stock Items

Creating single stock items

Perform the following steps to create a single stock item:

 Double click Inventory Info > Stock Item > Create in the Gateway of Tally
 The Stock Item Creation screen appears.
 Type the name of the stock item beside the Name option.
 Type an alias beside the Alias option
 Press Enter key. The list of Groups menu appears
 Double click the stock group under which you want to create a new stock
item in the list of groups menu for the under option.
The list of categories menu appears
 Double click the stock category under which you want to create a new
stock item in the list of categories menu for the category option.
The units menu appears
 Double click the measuremnts unit for the stock item in the units menu for
the units option.
 Enter opening balance, if any, in the field Opening Balance.
 In rate of duty: Enter the rate of duty charged on the item
 Accepct the details by pressing Yes at the end of the screed. This will close
the creation screen in default mode.

Creation of Multiple Stock Item:

Under Multiple Stock item creation, many items can created

simultaneously . following are steps for multiple stock item cration under Tally.

 Go to Gateway of Tally > Inventory Info. > Stock Item > Create
 For the field Under Group select All Items and press Enter
 Type the name of the stock item under the name of item column.
 Press the Enter Key. The list of categories menu appears
 Double Click the desired category in the list of categories menu for the
category column.
The units menu appears
 Double click the desired unit in the units menu for the unit coulmn.
 Enter opening Qty, if any and press Enter
  For the field Name of item, enter the name of the iem and press enter
 For the field, Under, select the brand of the item and press Enter
 For the field, Units, select No’s from units and press Enter
 Enter Opening Qty if any and press Enter
 For the field Name of item, enter the name of the iem and press enter
 For the field, Under, select the brand of the item and press Enter
 For the field, Units, select No’s from units and press Enter
 Enter Opening Qty if any and press Enter
 Press Enter to come to end of the screen.
 Accept the details by pressing Yes at the end of the screen

Displaying stock items:

User can display stock items in single mode and multiple mode. Display
will only show the list of items already created but user cannot make any
changes to stock items under display option.

Following are steps for Display:

 Go to Gateway to Tally < Inventory Info > Stock Item (single stock item or
multiple item) > Display
 Select the name of the stock Item from the list of items.
 The stock item display screen display. You cannot make any changes in
this screen.

Alter/Delete Stock Items:

Altering allow the user to make any required change in item already
created. For example if user has given wrong group to item while creation, he can
change the grouping of item in alter option. He can also delete the item under
alter option. Following are the steps for alteration of deletion of item.

 Go to Gateway to Tally < Inventory Info. > Stock Item > Alter
 Select the Stock Item you want to alter from the list of Items.
 The stock item alteration screen displays. Make the necessary changes
and accept Yes to save.
 You can delete a stock item only if you have not used it in any transaction
entry.
 Press ALT+D from stock item alteration screen to delete the stock item.
7. Discuss about unit of measures. How to create, alter delete and
display unit of measures.

Ans. Introduction:

Unit of Measures is very important part of inventory management in Tally.

It is not possible to study inventory management in Tally without study Unit of
Measures, because any stock item has to be measured in some specific units for
e.g. liquids will be measured in liters, solids will be measured in Kg or items or
nos or picies and so on. We have to create a specific unit of measures for
whatever type of goods that we stock in our business. We can create two types
of units in Tally that is:

 Simple Unit of Measures: A unit of measure that consist of only one

single Unit is called ‘Simple Unit of Measure’
 Compound Units of Measures: Many units are usually a combination ot
two or more. For example, dozen of 12 pieces or box of 10 numbers. They
are units with multiple factors. Such units are called ‘Compound Units of
Measures’.

Creation of Simple Unit of Measure:

Tally does not provide any pre defined units of measures under Inventory.
User must create own Units of Measure in Tally before creating inventory items.
A user can create any number of Units of Measure in Tally depending upon
need and requirement of the business. Following are steps for creating Simple
Units of Measures:

Go to Gateway of Tally > Inventory Info > Units of

Measure > Create . The Unit Creation screen is displayed as shown
below:

 This field will show the Type of Units.

o Simple
 o Compound.
 Simple units are nos, pcs , and so on. Compound unit is a combination of
two simple units.
 By default Tally.ERP 9 will show the Simple unit for creating the unit of
measure.
 You can select the Compound Units by clicking on that field or by
using SHIFT+TAB [cursor will go to the previous field].
 Define the Symbol of the unit, for example, Nos. This symbol is used in all
displays and printouts.
 Specify the Formal Name of the symbol, for example, Numbers. This
formal name is useful during the consolidation of data of different
companies, where the symbols might be the same but are assigned to
different units. The formal name will be used to match them.
 In this field you can specify the Number decimal places for the Units
from 0 to 4. This field is useful for Units measured in fractions.
For example, Kilogram unit. 1.255 Kgs, here 1 is for Kg and fraction 255 is for
gram. For this unit, number of decimal places required is 3
Compound Unit of Measure

A Compound Unit is a relation between two Simple Units. Hence, before you
create a Compound Unit, ensure that you have already created two Simple
Units. For example, To Create Compound unit – Doz (Dozen) of 12 Nos
(Numbers), you have to create two simple units, Doz (Dozen) and Nos (Numbers)
and set the conversion factor as 12.

 Go to Gateway of Tally > Inventory Info > Units of

Measure > Create. The Unit Creation screen is displayed as shown.
Now Click on Type field or Press SHIFT + TAB or Press Backspace Key.

 Select Compound from the Types of Units and press Enter. The Conversion
field will be displayed for creating Compound unit.
  Select the First unit from the Units List. In the above example, Dozen will
be the First Unit.
 Specify the Conversion Factor. In the above example, Conversion factor
will be 12.
 Specify the Second Unit from the Units List. In the above example,
Number will be the Second Unit. This unit is also called Tail Unit.
 Use CTRL + A or Accept the Screen for Saving of Compound Unit
Creation.
Alter Units of Measure

You can alter the units of measurement created in Tally.ERP 9.

 Go to Gateway of Tally > Inventory Info. > Units of Measure > Alter .
 Select the Name of Unit you want to alter from the Units list. The Unit
Alteration screen appears as shown below:

 Make the necessary changes.

 Press Ctrl+A to accept.
 You can delete a unit of measure by pressing Alt+D . However, a unit of
measure that is part of a compound measure cannot be deleted without
deleting the compound measure first.
Display Units of Measure

You can display the existing Units of Measure, since it is only display
Tally.ERP 9 does not allow you to alter any information in display mode.
 Go to Gateway of Tally > Inventory Info. > Units of Measure > Display.
 Select the Unit of Measure you would like to view from the Units list. You
can select a compound unit or a simple unit from the list. The Unit Display
screen is displayed as shown below:
 UNIT V
TALLY VOUCHE ENTRY
1. Explain different types of voucher in tally

Ans. Introduction:

A voucher is a document that records the details of the financial

transactions of a compnay. When you record a transaction of a company in Tally,
you need to specify the transaction’s ledger name as well. This helps in
maintaining consistancy in accounts related information. Tally provides different
types of vouchers for different transactions. You can use the suitable voucher to
enter details into ledgers for each transactions.

Types of vouchers in Tally:

Tally ERP 9 gives 18 types of predefined voucher types, you can use to
record the accounting and inventory related transactions. When you enable the
payroll feature in Tally, the number of counts of the predefined vouchers become
20. Tally allows you to create, display and alter voucher types.

In computerized accounting, we record transactions through voucher entry.

A voucher is a basic recording document. To input any data in Tally we must use
a voucher. Recording data through the voucher entry mode may be called
creating a voucher or voucher entry. Tally is pre-programmed with a variety of
accounting vouchers, each designed, to perform a different job. Tally gives us two
types of vouchers:

 Conventional
 Unconventinal

Conventional Vouchers:

Conventional vouchers are used to record all accounting transactions.

These vouchers directily affect to your final Account. In tally we have different
types of conventional vouchers:

 Contra: Contra entry is used to transfer amount from cash a/c to Bank
a/c and vise versa. It involves following
 Cash a/c to cash a/c
 Cash a/c to Bank a/c
  Bank a/c to Cash a/c
 Bank a/c to Bank a/c
 Payment: Payment voucher is used to record all payments by cash or
bank
 Receipt: receipt voucher is used to record all money/fund received by
cahs or bank.
 Journal: journal voucher is used to make adjustments in the accounts.
 Sales: sales Voucher is used to record all sales Transactions.
 Purchase: Purchase voucher is used to record all purchase Transactions.
 Debit Note: Debit note is used to Debit a particular party’s account for
purchase return:
 Credit Note: Credit note is used to credit a particular party’s account for
sale

Unconventional vouchers:

These are special vouchers and are used to record provisional or non-
accounting transactions. These vouchers does not affect the profitability of
financial position of the business. These vouchers are not part of main books of
accounts, but still provides the important information. These vouchers enable
valuble reports in terms of provisional accounts and forecasting. Types of
unconventional vouchers are as follows:

 Memos: To create memorandum voucher

 Rev Journal: To create Reversing journal voucher
 Optional: to make a voucher as optinal voucher
 Post dated: to make a voucher as post dated voucher
2. How to create voucher in Tally

Ans. You can customise the voucher by creating a voucher class.

To create a voucher type

 Go to Gateway of Tally > Accounts Info. or Inventory

Info. > Voucher Type > Create.
 Enter the Name of the voucher.
 Select the type of voucher.
 Enter the abbreviation in the Abbreviation field, if required.
 Select the Method of voucher numbering from the Methods of
Numbering list, which appears as shown below:
 Click here for more information about the Methods of
Numbering available.
 Enable Use effective dates for vouchers to enter effective dates for
vouchers.
 Enable Make this voucher type 'Optional' by default to set your
voucher to optional voucher by default.
 Enable Allow narration in voucher to give a common narration for
voucher.
 Enable Provide narration for each ledger in voucher ? if you want to
give a separate narration for each entry of a voucher. This would be
applicable for a multiple entry voucher where you want separate details
for each entry.
 Enable Print voucher after saving to print every voucher after entering
it.
 Set Use for POS invoicing to Yes to use the sales invoice as POS
invoice.
 Set the Default title to print on invoice to print the same title for POS
invoice.
 Select the bank in Default bank option to print the default bank ledger
when the option Print Bank Details is enabled in a Sales voucher.
 Enter the Default jurisdiction to be printed on the invoice, if required.
 Create a voucher class in the Name of Class field, if required.
 Press Enter to save.
3. Discuss about sales voucher entry in Tally

Ans. Use the step by step process to create sales voucher in Tally.

Screen: Gateway of Tally

Path: Tally Main → Gateway of Tally

Step 1:
 To enter the voucher creation screen, select the menu option 'Accounting
Vouchers'.

Screen: Accounting Voucher Creation

Path: Gateway of Tally → Accounting Voucher Creation

Step 2:
Button → 'Sales': Click on the button named 'Sales' or press 'F8', if Tally
ERP 9 is not already ion 'Sales Voucher' mode.

Step 3:
Field → 'Reference No': Specify the reference number like the customer's PO
number.

Step 4:
Field → 'Party's A/c Name': Choose the relevant customer name to whom
sales have been made.

Step 5:
Field → 'Sales Ledger': Under the list, choose a sales account. Tally can
process only those ledgers which have been created under the account group
'Sales Accounts'.

Step 6:
Field → 'Name of Item': Choose the stock item that has been sold.

Step 7:
Specify the sold quantity of the stock item.

Step 8:
Field → 'Rate': Specify the price of per unit at which the stock item was sold.

Step 9:
Field → 'per': Tally ERP proposes the UOM. This UOM was selected when
we create this stock item 'master'.

Step 10:
Field → 'Amount': Tally multiplies the rate fields and quantity. It
automatically proposes the amount. In Tally, there is no need to modify the
amount.

Step 11:
Field → 'Name of Item': In the same invoice, if we have sold more than 1
stock item to the customer, select another stock item. Else, we will select 'End
of List'.

Step 12:
 Filed → 'Name of Item': Choose another ledger. This ledger needs to be
included in the invoice.

Step 13:
Field → 'Narration': Specify a narration if we needed.

4. Discuss about purchase voucher in tally

Ans. Use the step by step process to create the purchase voucher in Tally.

Screen: Gateway of Tally

Path: Tally Main → Gateway of Tally

Step 1:
To enter the voucher creation screen, select the menu option 'Accounting
Vouchers'.

Screen: Accounting voucher creation

Path: Gateway of Tally → Accounting Voucher Creation

Step 2:
Button → 'Purchase': Click on the button or press F9, if Tally is not already
in 'Purchase Voucher' mode.

Step 3:
Field → 'Supplier's Invoice Number':Enter the invoice number. The invoice
no can be found on the invoice, which is given by the supplier.

Step 4:
Field → 'Date':Specify the date of the supplier's invoice.

Step 5:
Field → 'Name of Party Account': Choose the relevant vendor name from
whom purchases have been made.

Step 6:
Field → 'Purchase Ledger': Under the list, choose a purchase account.

Step 7:
Field → 'Name of Item': Choose the stock item that has been purchased.

Step 8:
Field → 'Quantity': Specify the quality of the purchased stock items.

Step 9:
 Field → 'Rate': Specify the price of per unit at which the stock item was
purchased.

Step 10:
Field → 'per': Specify the UOM relevant to this stock item. The UOM was
selected when creating this stock item 'master'. Note that Tally proposes the
UOM.

Step 11:
Filed → 'Amount': Tally multiplies the rate fields and quantity and proposes
the amount automatically.

Step 12:
Filed → 'Name of Item':If we have purchased more than one stock item from
the vendor in the same invoice, choose another stock item. Else, choose 'End
of List'.

Step 13:
Field → 'Name of Item': If another set of items need to be entered in a
different purchase ledger, choose another purchase ledger. Else, choose 'End
of List'.

Step 14:
Field → 'Narration': Specify a narration if needed.

Step 15:
'Accept' or 'Reject' the entered data so far.

5. Discuss about configuring Tax component in Tally

Ans. The procedure for implementation of GST in Tally ERP9 is very simple.
First of all the GST option for the company should be enabled or activated in
tally. To use Tally ERP9 for GST compliance, you need to activate the GST option
is activated for company then all GST related features are available in ledgers,
stock items, and transactions and GST returns can be generated. To activate or
enable the GST feature following are the steps:

 Select the company for which GSt need to be activated or enabled

 At gateway of Tally press F11(features) the following screen will displayed
 Select statutory & Taxation or F3
 Enable Goods and Services Tax (GST) option yes shown in the figure

 Then set/alter GST Details yes as new screen displayed as shown below:
6. Discuss about reports in Tally

Ans. Introduction
Reports play an important role for businesses to help manage their day-to-
day business operations efficiently. Understanding this need, Tally.ERP 9
provides many insightful reports. Reports in Tally.ERP 9 is designed to suit all
the aspects of accounting management, inventory management and statutory.

Key accounting reports in Tally.ERP 9 for businesses are

 Balance Sheet in Tally.ERP 9
The Balance Sheet gives a complete glance at the financial position of a
business. The Balance Sheet in Tally.ERP 9 shows the assets and
liabilities of a company. From the Gateway of Tally screen, a business
owner can access the Balance Sheet. The Balance Sheet can be configured
using F12 configuration in Tally.ERP 9. Tally.ERP 9 also offers Schedule VI
Balance Sheet for businesses. The Balance Sheet can be viewed for any
given dates. Multiple valuation types are given for defining stock
valuations such as FIFO, LIFO, Average Cost, Average Price and many
more.

 Profit & Loss Account in Tally.ERP 9

The Profit & Loss report in Tally.ERP 9 shows a company’s net profit or
loss in a given period. By default, this Tally report considers the period
starting from the date when the books begin to the entry date of the last
voucher. The Profit & Loss report in Tally.ERP 9 can be configured with
 F12 configuration available within the report. A business owner can see
Schedule VI Profit & Loss account or P&L statement in a vertical format
based on the requirements.

 Cash Flow/Fund Flow Report in Tally.ERP 9

The Cash Flow report in Tally.ERP 9 has been provided to help get a view
of cash inflow and outflow during an accounting period. This report makes
it easy for business owners to understand the cash flow situation for a
specific period and helps make decisions.

Similarly, the Fund Flow report in Tally.ERP 9 provides details on

the sources of funds and their net flow status on a monthly basis.

 Ratio Analysis Report in Tally.ERP 9

The Ratio Analysis report is a powerful report for financial analysis in
Tally.ERP 9. The multiple ratios in the report give a clear understanding of
the financial position of a business. These are Debt Equity Ratio, Quick
Ratio, Return on Working Capital, Return on Investment and so on. This is
one of the key Tally reports.

 Outstanding Report in Tally

A business owner can see receivables ledger-wise and bill-wise in
Tally.ERP 9. He can see ageing analysis which can be applied based on
due dates or as per the bill dates. Based on the time that has passed
(ageing), a business can accordingly connect with parties or manage funds
to make payments. With the bill wise ageing details, the user can see and
understand the details of bills for which payment is pending.

 Stock Summary Report in Tally.ERP 9

The Stock Summary report displays the current position of stocks or stock
in hand for a particular date. From this Tally report, a business owner can
view item-wise rates, quantity and value of stocks available. The Stock
Summary report in Tally.ERP 9 also enables business owners to view
gross profit at each item level based on landing cost and sales price. It also
shows the status of stocks available across various godowns. The user
can see the net stock position by considering purchase and sales orders
which are yet to be processed.

 Stock Ageing Analysis Report in Tally.ERP 9

This report in Tally.ERP 9 helps businesses understand their slow moving
goods versus fast moving goods. This Tally report helps business owners
to make decisions based on procurement of stocks, or whether to liquidate
stocks based on their age. Tally.ERP 9 gives the flexibility to define various
periods like 0-30 days, 31-60 days and so on based on business
 requirement. Business owners can see stock valuations as well from
within this report.

Statutory Reports in Tally.ERP 9

GST Reports in Tally.ERP 9

In GST, Tally.ERP 9 provides GSTR-1, GSTR-2, GSTR-3B and e-Way

Bill related reports. The GSTR-1 report in Tally.ERP 9 is designed exactly as the
form of GSTR-1 to make life easy for users.

Business owners can see -

 Details of transactions participating in GSTR-1

 Transactions not relevant for returns
 Transactions not participating because of incomplete information or
mismatches
 Serial number-wise details of values as mentioned in GSTR-1

A user can navigate from any value up to the actual transaction itself. Users
can correct transactions under Incomplete/mismatch in the Information section
and allow these transactions to participate in GST returns. This way, Tally
ensures that a user files the most accurate GST returns. A similar experience is
given for GSTR-2 and GSTR-3B.

E-Way Bill Reports in Tally.ERP 9

Tally.ERP 9 gives comprehensive e-Way Bill reports to make life simpler for
users. A user can view -

 Transactions which have been exported for e-Way Bills

 Transactions which are yet to be exported for e-Way Bills
 e-Way Bill details of all the transactions for which e-Way Bills have
already been generated.

Apart from all of the above mentioned Tally reports, there are many more
reports in Tally.ERP 9 all of which help businesses to access their financial
analysis in the easiest manner and take quick business decisions.